Terminally ill people will be able to unlock pension savings early under DWP rule change promised by spring

Pensions minister Torsten Bell has promised new rules that would make it easier for terminally ill people to draw on their private pension savings early, with formal proposals expected by spring. The DWP intends to replace the current requirement for medical evidence of death within six months with a broader 12-month test, reducing bureaucratic hurdles at the hardest point in people's lives. The reforms will also bring pension rules into closer alignment with the wider benefits system.

Torsten Bell said people facing terminal illness 'shouldn't have to go through red tape to get at their own pension savings.'

Marie Curie's Dr Sam Royston welcomed the move, citing charity research showing a terminal diagnosis causes a sudden and significant drop in household income.

The changes will not require medical evidence of death within six months — instead, death must only 'reasonably be expected' within 12 months.